10% mortgages for FTB

keith85

Me and my partner have found a property we love and have had an offer for £173,000 accepted. We have enough for a 10% mortgage.

Our joint income is £53k a year. My partner 7 years ago had a bad credit rating but has now sorted all that out and has been spot on for the last 5 years. Is this likely to show up?

Also my partner suggested she buys the house with me in her dads name as he has a better credit rating, earns more ect. But this would mean we would have to pay stamp duty as he is not a FTB.

Ive seen 10% mortgages, but how easily are the banks giving them out to FTB and can anyone recommend any steps we take or have any advice?

Thanks

mrs-h_3

10% mortgage??? Do you mean you have a 10% deposit and want a 90% mortgage? There are plenty of online credit agencies which will show you your credit report to see how your rating is before you apply for a mortgage etc

Conrad

It's impossible to predict whether your credit rating will be accepted - the ONLY way to discover the answer is to actualy apply.
Dads name may work but there are a few factors that could be problematic;

1) His age, and the resulting term allowed, which in turn may affect affordablity
2) The common sense test - can he afford to retain his existing mortgage (if there is one), is the new property near to his work (for all we know he lives far away), what will happen with the existing property.

So there is reason to be hopeful subject to the exact situation you have.
The rates are high at 90% and it has to be on a capital repayment basis.

beecher2

Why have you put an offer in before knowing if you can get a mortgage? I'd advise going to see a broker - take a copy of both your credit files with you.

herbiesjp

As FTBs you will have plenty of questions to ask along the way, in addition to the ones above.

The best person to help would be a good whole of market adviser.

Get in contact with one asap, as you will need to move quickly for the agent/vendor seeing as you have gone about this the wrong way around i.e. offer first and the looking at the mortgage (normally the other way around).

keith85

Sorry, I meant 10% deposit in my title! been a long day!

We have a 10% deposit, speaking to various brokers tomorrow we have been recommended.

jonny_power

We've got a 90% LTV agreed in principle with Santander. Halifax also have 90% LTV mortgages so there's two places to have a look at.

whatyadoinsucka

also hsbc do a 90% ltv and they have mortgage calculators for affordability and repayment amounts.
you may not get it, but worth a shot

GGB

Northern Rock as well

keith85

whatyadoinsucka wrote: »

also hsbc do a 90% ltv and they have mortgage calculators for affordability and repayment amounts.
you may not get it, but worth a shot

HSBC is the bank that my partner had her bad credit incident with so think we will give Halifax, Santander and Northern Rock a look. Thanks for all your responses

jonny_power

I bank with HSBC and although have an overdraft facility (which I don't use) I don't think I have a bad history with them they still didn't accept me when the put us through for AIP so I think it's wise to ignore unless you have an impeccable history.